“Reputational risk, in its crudest form, is the peril of economic harm from angry, disappointed stakeholders. Marketers, in their zeal to satisfy one objective, may inadvertently undermine another. Credibility requires authenticity, and aspirational marketing can actually undermine credibility. Activist investors and plaintiffs’ lawyers can tell when stakeholders have had their expectations raised unrealistically and can harness the resulting anger. Board members and corporate leadership pay the price as the personal targets of these litigations and proxy fights.”
Insurance Business America
September 21, 2019
“(In a crisis), stakeholders want to know that the company mitigated …(reputation) risk. Insurance products…send that message.”
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Reputation insurance: parametric indemnification, both affirming trust and reducing economic losses.
For a broader view of reputation risk, discover additional articles by Steel City Re here, mentions of Steel City Re here, and comments on newsworthy topics by Steel City Re here.
Risk governance and management, risk financing in insurance captives, and risk transfer through reputation insurances comprise the constituent elements of a comprehensive enterprise reputation risk solution.
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